UK manufacturing could lead low-carbon revolution shows EEF/Deloitte report
British industry has urged the government to recognise the vital role that business has to play in moving to a low-carbon economy, setting out the key policies needed to break down the current barriers to investment in key technologies where the UK can become a world leader.
The call was made by EEF, the manufacturers’ organisation ahead of the publication of the renewables consultation/strategy by the Department for Business, Enterprise and Regulatory Reform (BERR) and following the publication of a report, ‘Delivering the Low Carbon Economy – Business Opportunities for UK Manufacturers’, produced by EEF in collaboration with Deloitte’s UK Manufacturing Industry Group.
The report shows that UK manufacturing has the potential to lead the way in the low-carbon revolution. A wealth of transferable industrial capabilities, a generous endowment of relevant natural resources and market-leading technologies leave the UK extremely well-placed to profit from the expansion in clean energy technologies such as offshore wind, wave and tidal, and carbon capture and storage.
According to estimates, this could bring potential revenues of £2bn per annum from offshore wind and £300m-900m from marine renewables where the UK has more businesses engaged in developing marine energy devices than any other country. Furthermore, carbon capture and storage could be a $40bn a year industry by 2030 and the UK has market leaders in each of the major capture technologies.
Martin Temple, EEF Chairman, said: “Moving to a low-carbon economy will create significant business opportunities for the UK. But we will need to move quickly and decisively. Businesses around the world are alive to the massive opportunities and a number of governments are making their exploitation a national priority.”
Jane Lodge, UK Manufacturing Industry Leader at Deloitte, said: “A range of opportunities exist for manufacturers to develop new climate friendly technologies and many UK businesses are already world class in their sectors. However, there is still much work to be done both by manufacturers themselves and also by government to create the right environment to allow these opportunities to be maximised.”
Despite these opportunities, the manufacturing industry faces a number of barriers before it can realise the potential of the low-carbon economy. Overcoming these barriers should be a key consideration for government’s climate change strategy.
Martin Temple warned: “We need a strategy that provides leadership, overcomes the barriers to investment and helps develop the capabilities needed to deliver a low-carbon economy. The UK must be an attractive location for low-carbon businesses. The existing emphasis on negative incentives, such as carbon pricing and energy taxation, must be balanced with positive incentives for companies. In particular, support for R&D should be increased, better targeted and made more accessible.”
A podcast featuring EEF’s Chairman, Martin Temple CBE, with Stephen Radley, Roger Salomone and Deloitte Manufacturing Industry Leader, Jane Lodge can be found with the report and a web seminar on its findings on http://www.deloitte.co.uk/manufacturing
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country's leading professional services firms.
Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk\about for a detailed description of the legal structure of DTT and its member firms.
The information contained in this press release is correct at the time of going to press.